New York Court of Appeals
Matter of Rosbaugh (Town of Lodi)
March 13, 202543 N.Y.3d 567
Summary
The Court of Appeals held that treble damages authorized by RPAPL 861 are punitive in nature because the statute uses a good-faith provision to reduce treble damages to single damages and its legislative history emphasizes punishment and deterrence. Because municipalities may not be subjected to punitive damages, the arbitrator lacked authority to impose treble damages against the Town of Lodi, requiring partial vacatur of the award. The Court reversed the Appellate Division and granted the petition to vacate in part.